American Express 2014 Annual Report Download - page 111

Download and view the complete annual report

Please find page 111 of the 2014 American Express annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 130

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130

AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table presents the effects of reclassifications out of AOCI and into the Consolidated Statements of Income for the years ended
December 31:
(Gains) losses recognized in income
Amount
Description (Millions) Income Statement Line Item 2014 2013
Available-for-sale securities
Net gain in AOCI reclassifications for previously unrealized net gains on investment securities Other non-interest revenues $ 111 $145
Related income tax expense Income tax provision (40) (52)
Reclassification to net income related to available-for-sale securities 71 93
Foreign currency translation adjustments
Reclassification of realized losses on translation adjustments and related hedges Other expenses (9) —
Related income tax expense Income tax provision 4—
Reclassification of foreign currency translation adjustments (5) —
Total $66$93
NOTE 19
NON-INTEREST REVENUE AND EXPENSE DETAIL
The following is a detail of Other commissions and fees for the years ended December 31:
(Millions) 2014 2013 2012
Foreign currency conversion fee revenue $877$877$ 855
Delinquency fees 722 667 604
Loyalty Partner-related fees 383 310 290
Service fees 366 375 362
Other(a) 160 185 206
Total Other commissions and fees $2,508$ 2,414 $ 2,317
(a) Other primarily includes fee revenue from fees related to Membership Rewards programs.
The following is a detail of Other revenues for the years ended December 31:
(Millions) 2014 2013 2012
Gain on sale of investment in Concur Technologies $744$—$ —
Global Network Services partner revenues 694 650 664
Net realized gains on investment securities(a) 100 136 126
Other(b) 1,451 1,488 1,635
Total Other revenues $2,989$ 2,274 $ 2,425
(a) Net realized gains on investment securities include gross losses of nil, nil and $1 million for the years ended December 31, 2014, 2013 and 2012. Specific
identification method is used to reclass unrealized gain (losses) into earnings from AOCI upon sale or maturity.
(b) Other includes revenues arising from foreign exchange gains on cross-border Card Member spending, merchant-related fees, insurance premiums earned from
Card Member travel and other insurance programs, Travelers Cheques-related revenues, revenues related to the GBT JV transition services agreement,
earnings from equity method investments and other miscellaneous revenue and fees.
The following is a detail of Marketing, promotion, rewards, Card Member services and other for the years ended December 31:
(Millions) 2014 2013 2012
Marketing and promotion $3,320$ 3,043 $ 2,890
Card Member rewards 6,931 6,457 6,282
Card Member services and other 822 767 772
Total Marketing, promotion, rewards, Card Member services and other $ 11,073 $ 10,267 $ 9,944
Marketing and promotion expense includes advertising costs, which are expensed in the year in which the advertising first takes place. Card
Member rewards expense includes the costs of rewards programs, including Membership Rewards and co-brand arrangements. Card
Member services expense includes protection plans and complimentary services provided to Card Members.
111